Investors looking for good growth stories in big-cap med-tech, are not exactly spoiled for choice. Formerly reliable growers like Medtronic (NYSE:MDT), Stryker (NYSE:SYK) and Boston Scientific (NYSE:BSX), are still struggling to reignite growth and quality blue-chips, like Johnson & Johnson (NYSE:JNJ), are muddling through a low-volume environment.
Against that backdrop, St. Jude (NYSE:STJ) is not so disappointing. What's more, while this company does have several formidable competitors hard at work in taking away their business, St. Jude also has a compelling portfolio that could deliver growth re-acceleration in a few years.
Ho-Hum Third Quarter
Expectations were not high for St. Jude, going into this quarter, and St. Jude did not deliver a lot of growth. Reported revenue rose more than 11%, but organic growth was sub-2%. The company's ICD business remains weak and neuromodulation is looking a little disappointing. Atrial fibrillation delivered 20% growth, though, and the cardiovascular business is getting a big boost from the AGA Medical acquisition.
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